Mining giant Rio Tinto Ltd
(ASX:RIO) has been given the green light by the state Environmental Protection Authority for the proposed expansion of its operations in the Pilbara.
The environmental authority approved the miner’s plans to build a second port at Cape Lambert, allowing Rio to increase its iron ore exports by up to 130 million tonnes a year.
According to the Australian Rio lodged the application close to three years ago under its subsidiary Pilbara Iron, the paper says analysts at the time estimated the total investment to be worth around $10 billion.
The EPA acknowledged that certain conditions would need to be met to make sure that the impact on wildlife around the area was managed.
The approval comes amid uncertainty surrounding the future of mining operations in Australia, with Rio outraged at the Federal Governments proposed 40% tax on mining profits.
The miner last week, that in light of the proposed mining tax, it would be putting a number of expansion projects in Australia on hold until it could properly assess the impact.
Rio earned $5.4 billion in the 2009 calendar year.
